Crude Oil Falls for 4th Session

Crude oil fell to around $95.5 a barrel on Monday, extending losses for a fourth session as traders focused on diplomatic efforts to de-escalate the US-Iran conflict and signs that oil and LNG shipments through the Strait of Hormuz remain resilient. President Donald Trump said he would probably be open to meeting Iranian President Masoud Pezeshkian during this week’s UN General Assembly in New York. Trump may also meet with other Persian Gulf leaders, while he is scheduled to hold a summit with Chinese President Xi Jinping. Meanwhile, US Central Command chief Admiral Brad Cooper said crude and LNG flows through Hormuz have reached a six-month high, with the main transit lanes clear of mines. Middle East oil flows averaged 17.1 million barrels per day over the past 10 days, despite Saudi Arabia’s East-West pipeline remaining disrupted after recent attacks.

Crude oil dropped below $98 per barrel on Monday, declining for the fourth straight session, pressured by hopes that increased diplomatic efforts could help end the Middle East conflict and restore energy flows from the region. President Donald Trump said he would “probably” be open to meeting Iranian President Masoud Pezeshkian on the sidelines of the United Nations General Assembly in New York this week. Trump may also meet with other Persian Gulf leaders, while he is scheduled to hold a summit with Chinese President Xi Jinping. Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al-Thani urged Gulf states to cooperate in restoring stability across the region, noting that messages were being exchanged between the US and Iran. Meanwhile, US Central Command chief Admiral Brad Cooper said oil and liquefied natural gas shipments through the Strait of Hormuz over the past two weeks had reached their highest level in six months.

Crude oil prices tumbled below $100 a barrel on Friday, erasing gains after a volatile session and falling for a third consecutive session. Markets expect the closure of Saudi Arabia’s key pipeline to have a smaller impact on supplies than initially feared. Satellite imagery suggests Saudi Arabia moved 2.8 million bpd through the Strait of Hormuz over the past six days, compared with just 700,000 bpd in August. Saudi Arabia has reportedly sold as many as 60 million barrels of crude from the Persian Gulf port of Ras Tanura for September and October loadings outside the strait through ship-to-ship transfers. Reports that Aramco expects to restore half of the pipeline’s daily flows also eased supply concerns. Still, only four commodity vessels were detected moving through Hormuz on Thursday. Volumes from Hormuz are being picked up mostly by refiners in China and South Korea. China exported 6.01 million tons of refined fuels in August, up 12.7% yearly. Oil prices fell 0.5% on the week.